Saudi Arabia's Bahri signs $203mln deal with govt desalination firm

New project expected to be operational in Q1 2021

  
Image used for illustrative purpose. Workers walk outside a desalination plant, 35 km south of Riyadh, May 4, 2011.

Image used for illustrative purpose. Workers walk outside a desalination plant, 35 km south of Riyadh, May 4, 2011.

REUTERS/Fahad Shadeed

Saudi-listed logistics and transportation firm National Shipping Co. of Saudi Arabia (Bahri) has signed a 760 million Saudi riyals ($202.6 million) deal with Saline Water Conversion Corporation (SWCC), the Saudi government company responsible for the desalination of seawater.

The deal entails an agreement to supply desalinated water from floating mobile stations to desalination tanks, Bahri said in a bourse statement.

The agreement includes establishing three floating stations for water desalination and supplying desalinated water from stations to the desalination plant tanks by 50,000 cubic meters per day for each station.

The project will be operational for 20 years, starting from the date of commercial operation, which is expected to be in the first quarter of 2021.

The agreement includes SWCC’s commitment to purchase water production from the project during the agreement duration.

The project will be financed through Bahri’s internal resources as well as bank loans.

(Writing by Nada Al Rifai nada.rifai@refinitiv.com , edited by Seban Scaria)

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© ZAWYA 2019

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